In a letter to the legislature on March 4, 1998, Grand Duke Jean named his son, Prince Henri, "lieutenant-representative," which allowed him to represent his father in all official duties and thereby set the stage for Henri to succeed to the throne. Grand Duke Jean had taken office on Nov. 12, 1964.

Prime Minister Jean-Claude Juncker in his state of the nation address declared information technology the "fourth factor of production." With further investment in electronic infrastructure, accelerated intensive training for schoolchildren and the unemployed, and the legal framework in place, he aimed to develop Luxembourg as a center of electronic commerce.

Luxembourg’s economy in 1998 continued its steady growth of the previous 15 years. Prime Minister Juncker attributed its success as follows: "As a small country we have the ability to make decisions quickly. As we say in Luxembourg: ’Schnellboot gegen Tank [the speedboat takes on the tank].’ "